Products and processes for applying conditions to a lottery entry

ABSTRACT

In accordance with some embodiments, systems, methods and apparatus are provided for facilitating consolation payouts in a conditional lottery ticket system.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application claims the benefit of priority of U.S.Provisional Patent Application No. 61/045,771 entitled “PRODUCTS ANDPROCESS FOR APPLYING CONDITIONS TO A LOTTERY ENTRY” filed Apr. 17, 2008,which is incorporated by reference herein as part of the presentapplication.

The present application is also related to the following applications,each of which is incorporated by reference herein as part of the presentapplication:

U.S. patent application Ser. No. 11/424,418 entitled “PRODUCTS ANDPROCESSES FOR APPLYING CONDITIONS TO A LOTTERY ENTRY” filed Jun. 15,2006;

U.S. patent application Ser. No. 11/424,408 entitled “PRODUCTS ANDPROCESSES FOR APPLYING CONDITIONS TO A LOTTERY ENTRY” filed Jun. 15,2006;

U.S. patent application Ser. No. 11/424,402 entitled “PRODUCTS ANDPROCESSES FOR APPLYING CONDITIONS TO A LOTTERY ENTRY” filed Jun. 15,2006;

U.S. patent application Ser. No. 10/843,198 entitled “PRODUCTS ANDPROCESSES FOR APPLYING CONDITIONS TO A LOTTERY ENTRY” filed May 11,2004;

U.S. patent application Ser. No. 10/162,823 entitled “CONDITIONALLOTTERY SYSTEM” filed Oct. 25, 2001, and issued May 11, 2004 as U.S.Pat. No. 6,733,387;

U.S. patent application Ser. No. 09/627,192 entitled “CONDITIONALLOTTERY SYSTEM” filed Jul. 26, 2000, and issued Dec. 4, 2001 as U.S.Pat. No. 6,325,716; and

U.S. patent application Ser. No. 08/912,185 entitled “CONDITIONALLOTTERY SYSTEM” filed Aug. 15, 1997, and issued Nov. 14, 2000 as U.S.Pat. No. 6,146,272.

BACKGROUND

The present invention relates generally to lottery transactions.

As is well known, a lottery is a game in which players receive a chanceto win a (typically large) prize, such as money or products in exchangefor purchasing entries to the lottery. A lottery ticket typicallyembodies such an entry.

One lottery game, known as “lotto”, typically requires the player tochoose six numbers between one and forty-two. The selected group ofnumbers are then compared to the winning lottery numbers, which havebeen randomly selected from the larger pool of numbers, between one andforty-two, at some specified time and date after purchase of the lottoticket. To win a prize, the player-selected lotto ticket numbers mustmatch all or some of the winning lottery numbers.

Typically, a lottery system utilizes a central lottery computer tocommunicate with remote lottery terminals. A player typically selectsnumbers on a lottery “sense mark slip”, and the lottery terminaloperator inserts the sense mark slip into a reader at the lotteryterminal, which optically reads the sense mark slip using a known marksensing process. Alternatively, some lottery systems offer automaticlottery number generation features, commonly referred to as “quick-pick”systems, which randomly select lottery numbers on behalf of the player.The lottery terminal then communicates the player's selected numbers tothe central lottery computer for validation and storage. After thelottery numbers have been stored, the lottery terminal, under thedirection of the central lottery computer, prints and issues theofficial lottery ticket.

Lotto drawings are typically conducted on a periodic basis, with manystate lotteries conducting lotto drawings twice per week. Players maypurchase lotto tickets at a lottery terminal, or via a subscription thatautomatically enters a player in the lottery game for a predefinednumber of weeks, often at a discounted price.

If the jackpot prize is not awarded for a particular lotto drawing, thejackpot prize value typically rolls over to increase the jackpot for thesubsequent drawing. Thus, jackpots increase from week to week when thereis no winner. The amount of the jackpot prize is typically determinedbased on sales.

A drawback of existing lottery systems is the need for some players(e.g., who do not or cannot purchase a subscription) to wait in line inorder to purchase a ticket. The typical wait time increases as thepotential value of the lottery drawing increases, and as the end of thedrawing approaches. Consequently, potential players may be discouragedfrom participating. Many other features of conventional lottery systemsdiscourage broader participation by players.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic block diagram illustrating a conditional lotterysystem in accordance with one embodiment of the present invention;

FIG. 2A is an example of an illustrative sense mark slip in accordancewith an embodiment of the present invention;

FIG. 2B is an example of an illustrative lottery ticket in accordancewith an embodiment of the present invention;

FIG. 3 is a schematic block diagram of an exemplary lottery terminal ofFIG. 1;

FIG. 4 is a schematic block diagram of an exemplary lottery server ofFIG. 1;

FIG. 5 illustrates a sample table from the ticket database of FIG. 4;

FIG. 6 illustrates a sample table from the conditional ticket databaseof FIG. 4;

FIG. 7 illustrates a sample table from the winning ticket database ofFIG. 4;

FIG. 8 is a flow chart describing an exemplary lottery terminal processas implemented by the lottery terminal of FIG. 3;

FIGS. 9A and 9B, collectively, are a flow chart describing an exemplaryticket sale transaction process as implemented by the lottery server ofFIG. 4;

FIG. 10 is a flow chart describing an exemplary conditional ticketevaluation process as implemented by the lottery server of FIG. 4; and

FIG. 11 is a flow chart describing an exemplary winning ticketevaluation process as implemented by the lottery server of FIG. 4.

DETAILED DESCRIPTION

Numerous embodiments are described in this application, and arepresented for illustrative purposes only. The described embodiments arenot intended to be limiting in any sense. The invention is widelyapplicable to numerous embodiments, as is readily apparent from thedisclosure herein. Those skilled in the art will recognize that thepresent invention may be practiced with modification and alterationwithout departing from the teachings disclosed herein. Althoughparticular features of the present invention may be described withreference to one or more particular embodiments or figures, it should beunderstood that such features are not limited to usage in the one ormore particular embodiments or figures with reference to which they aredescribed.

The terms “an embodiment”, “embodiment”, “embodiments”, “theembodiment”, “the embodiments”, “one or more embodiments”, “someembodiments”, and “one embodiment” mean “one or more (but not all)embodiments of the present invention(s)” unless expressly specifiedotherwise.

The terms “including”, “comprising” and variations thereof mean“including but not limited to”, unless expressly specified otherwise.

The enumerated listing of items does not imply that any or all of theitems are mutually exclusive, unless expressly specified otherwise.

The terms “a”, “an” and “the” mean “one or more”, unless expresslyspecified otherwise.

Devices that are in communication with each other need not be incontinuous communication with each other, unless expressly specifiedotherwise. In addition, devices that are in communication with eachother may communicate directly or indirectly through one or moreintermediaries.

A description of an embodiment with several components in communicationwith each other does not imply that all such components are required. Onthe contrary a variety of optional components are described toillustrate the wide variety of possible embodiments of the presentinvention.

Further, although process steps, method steps, algorithms or the likemay be described in a sequential order, such processes, methods andalgorithms may be configured to work in alternate orders. In otherwords, any sequence or order of steps that may be described does notnecessarily indicate a requirement that the steps be performed in thatorder. The steps of processes described herein may be performed in anyorder practical. Further, some steps may be performed simultaneously.

It will be readily apparent that the various methods and algorithmsdescribed herein may be implemented by, e.g., appropriately programmedgeneral purpose computers and computing devices. Further, programs thatimplement such methods and algorithms may be stored and transmittedusing a variety of known media.

When a single device or article is described herein, it will be readilyapparent that more than one device/article (whether or not theycooperate) may be used in place of a single device/article. Similarly,where more than one device or article is described herein (whether ornot they cooperate), it will be readily apparent that a singledevice/article may be used in place of the more than one device orarticle.

The functionality and/or the features of a device may be alternativelyembodied by one or more other devices which are not explicitly describedas having such functionality/features. Thus, other embodiments of thepresent invention need not include the device itself.

The term “computer-readable medium” as used herein refers to any mediumthat participates in providing instructions which may be read by acomputer, a processor or a like device. Such a medium may take manyforms, including but not limited to, non-volatile media, volatile media,and transmission media. Non-volatile media include, for example, opticalor magnetic disks and other persistent memory. Volatile media includedynamic random access memory (DRAM), which typically constitutes themain memory. Transmission media include coaxial cables, copper wire andfiber optics, including the wires that comprise a system bus coupled tothe processor. Transmission media may include or convey acoustic waves,light waves and electromagnetic emissions, such as those generatedduring radio frequency (RF) and infrared (IR) data communications.Common forms of computer-readable media include, for example, a floppydisk, a flexible disk, hard disk, magnetic tape, any other magneticmedium, a CD-ROM, DVD, any other optical medium, punch cards, papertape, any other physical medium with patterns of holes, a RAM, a PROM,an EPROM, a FLASH-EEPROM, any other memory, chip or cartridge, a carrierwave, or any other medium from which a computer can read.

Various forms of computer readable media may be involved in carryingsequences of instructions to a processor.

The present inventors have recognized that allowing lottery entries tobe conditioned can significantly increase their desirability.Consequently, sales of such entries can be significant. One examplecondition is a desired minimum jackpot amount in order to enter an entryin the drawing.

In some embodiments, a lottery ticket becomes “active” when thecondition is satisfied (and equivalently, the ticket is not active whenthe condition is not satisfied). A ticket which is initially inactivemay be activated upon a certain condition. A ticket which is initiallyactive may be deactivated upon a certain condition. When a ticket isactivated/deactivated, it may remain activated/deactivated only as longas the condition which prompts the activating/deactivating so applies.Alternatively, when a ticket is activated/deactivated, it may remainactivated/deactivated irrespective of changes in the condition whichprompts the activating/deactivating.

The present inventors have also recognized that since some people onlydesire to purchase lottery tickets under certain conditions (e.g., largejackpot), allowing such conditions to be imposed on entries isadvantageous. Satisfaction of such conditions may be known ahead of time(e.g., every first of the month) or may be unknown ahead of time (e.g.,every time it snows more than one inch).

According to one embodiment, a conditional lottery ticket systemprocesses conditional lottery ticket transactions, including theacceptance and validation of play entries. The conditional lotteryticket system preferably includes a central lottery server and one ormore remote lottery terminals. The conditional lottery ticket systempermits a player to purchase conditional lottery tickets that are notactivated (i.e. that are deactivated) unless one or more player-definedconditions are satisfied.

The conditions (which may be defined by the player) may include, forexample, a minimum lottery jackpot, a particular future date ofactivation, or a particular external event, such as when the moon on thedrawing date will be a full moon. The player may be permitted to play aconditional lottery ticket at no additional charge over the normal costof a conventional lottery ticket, as an incentive for increased play, orupon payment of an additional fee, as a premium charged to the playerfor the convenience offered by the conditional lottery ticket.

In one embodiment, the conditional lottery ticket system permits aplayer to purchase conditional lottery tickets (i) individually, wherebythe player's lottery ticket is activated the next time theplayer-specified activation conditions are satisfied; (ii) on asubscription basis for a predefined fee, whereby the player's lotteryticket is automatically activated a predefined number of times when theplayer-specified activation conditions are satisfied; and/or (iii) on aperpetual subscription basis, whereby the player's lottery ticket isautomatically activated each time the player-specified activationconditions are satisfied until the subscription is cancelled.

In one embodiment, the conditional lottery ticket system permits theplayer to specify the numbers to be played for each game, as well as anyactivation conditions. In one embodiment, a player utilizes a sense markstrip or another suitable computer-readable material, to indicate thenumbers to be played and any activation conditions. Alternatively, theconditional lottery ticket system may incorporate a “quick-pick” lotterynumber generation feature, which randomly selects lottery numbers onbehalf of the player, either at the time of sale or at the time theticket is activated.

The lottery terminal reads the sense mark slip and the player's selectednumbers and any specified activation conditions are then communicated tothe central lottery server for validation and storage. After theselected lottery numbers and any activation conditions have been stored,the lottery terminal, under the direction of the central lottery server,preferably prints and issues the official lottery ticket, indicating thelottery numbers to be played, as well as any specified activationconditions. The conditional lottery ticket system preferably evaluatesthe pending conditional lottery tickets to determine if theplayer-defined activation conditions of any conditional lottery ticketsare satisfied on a periodic basis, or at some predefined time periodbefore each lottery drawing.

Another aspect of the invention allows a player to specify one or moreside bets, for example, on the number of jackpot winners, or onparticular characteristics of the jackpot winners, such as the sex,county, or age of the jackpot winner, preferably for an additionalamount over the normal cost of a lottery ticket. Prizes for the side betcan be separately awarded or awarded as a multiplier of conventionallottery jackpot awards.

FIG. 1 shows a conditional lottery ticket system 100 for processingconditional lottery ticket transactions, including the acceptance andvalidation of play entries, for example, in a state lottery. Theconditional lottery ticket system 100 includes a lottery network 110 fortransferring information between a central lottery server 400, discussedbelow in conjunction with FIG. 4, and one or more remote lotteryterminals, such as an illustrative lottery terminal 300, discussed belowin conjunction with FIG. 3.

In one embodiment, the conditional lottery ticket system 100 permits aplayer to purchase conditional lottery tickets that are not activateduntil one or more conditions (for activation or deactivation) aresatisfied. Such conditions may be defined by a player, selected by aplayer and/or imposed on a player. The player may be allowed to specifyone or more player-defined conditions (a) at no additional charge overthe normal cost of a conventional lottery ticket, as an incentive forincreased play, or (b) upon payment of an additional fee, as a premiumcharged to the player for the convenience offered by the conditionallottery ticket.

A wide variety of conditions are embraced by the present invention. Manyconditions are explicitly recited in the present disclosure, and manymore will be apparent to those of ordinary skill in the art based on thepresent disclosure.

For example, in one embodiment, a condition may specify that a lotteryticket should be active when the lottery jackpot exceeds a predefinedthreshold. For example, the condition may specify that a particularlottery ticket should remain active and should not be deactivated untilthe lottery jackpot is below the predefined threshold.

In one embodiment, a condition may specify that a lottery ticket shouldbe active when there is no prior winner of the lottery during apredetermined number of previous drawings (e.g., no winner for the lastfive drawings).

In one embodiment, a condition may specify that a lottery ticket shouldbe active when there is no prior winner of the lottery during apredetermined period of time (e.g., no winner for the last two weeks).

In one embodiment, a condition may specify that a lottery ticket shouldbe active on a particular date or dates (e.g., every drawing inSeptember, on the player's birthday, on even numbered days), or upon theoccurrence of some external event, such as when the drawing date willfall on a “Friday the thirteenth.”

In one embodiment, a condition may specify that a lottery ticket shouldbe active when at least a predetermined number of tickets have been soldfor the drawing.

In one embodiment, a condition may specify that a lottery ticket shouldbe active when a previous winning lottery ticket was purchased at acertain location (e.g., in my town, in my state, at a particular chainof stores).

In one embodiment, a condition may specify that a lottery ticket shouldbe active when a number or numbers on the lottery ticket has beenincluded in a winning lottery entry during a predetermined time period(e.g., at least two of my numbers were on a winning entry in the lasttwelve months). Similarly, a condition may specify that a lottery ticketshould be active when no number on the lottery ticket has been includedin a winning lottery entry during a predetermined time period (e.g.,none of my numbers were on a winning entry in the last twelve months).

In one embodiment, a condition may specify that a lottery ticket shouldbe active when a particular sports event occurs (e.g., a certain teamhas won/lost a game this week, a certain player has hit a home run thisweek, a certain team pitches a shutout).

In one embodiment, a condition may specify that a lottery ticket shouldbe active when a financial event occurs (e.g., a certain company's stockprice increases, a certain company's stock price increases more than10%, the DOW JONES industrial average surpasses 14,000).

In one embodiment, a condition may specify that a lottery ticket shouldbe active when no other lottery ticket includes all the same numbers asthe lottery ticket for the next drawing (e.g., when a jackpot would nothave to be shared with another player).

In one embodiment, a condition may specify that a lottery ticket shouldbe active when the player who owns the lottery ticket has won apredetermined amount of money on the previous drawing (e.g., won between$10 and $100, won less than $50, won more than $300).

In one embodiment, a condition may specify that a lottery ticket shouldbe active when the purchaser of the ticket has also purchased at least apredetermined number of other tickets, or other items. In such anembodiment, the lottery terminal dispensing tickets could monitor thenumber of tickets sold in a particular transaction, and apply theactivation to a conditional lottery ticket purchased concurrently with apredetermined number of other lottery tickets. Additionally oralternatively, the lottery terminal may receive an identifier thatidentifies a particular player, thereby allowing lottery ticket sales tobe associated with the player. In such an embodiment, the player'sticket purchases may be recorded and tracked even if the purchases occurat different times and/or different locations. Various means forcarrying an identifier, including cards with bar codes or magneticstripes, are known, and such means can be used to provide a playeridentifier to the lottery terminal. Upon receipt of such an identifier,the identifier can be used to reference a database of players and theirassociated purchases.

More than one condition may be combined to form a composite condition.In one embodiment, conditions may be joined by Boolean operators such asAND, OR and NOT to form a composite condition. For example, a compositecondition may be ((condition 1) OR (condition 2)) AND NOT (condition 3).

A conditional lottery ticket may include more than one associatedcondition, such that each associated condition corresponds to aparticular number of entries (e.g., ticket records created in the activeticket database 500). Such a plurality of associated conditions may beused to purchase different number of entries upon satisfaction ofdifferent conditions. For example, a conditional lottery ticket mayspecify that upon satisfaction of a first condition (the jackpot amountis greater than $25,000,000 but less than $50,000,000) two entries areto be created, and upon satisfaction of a second condition (the jackpotamount is at least $50,000,000) five entries are to be created.

A condition may be subsequently overridden. For example, the player maydecide that, regardless of a condition applicable to the ticket, aticket should be activated or deactivated.

In some embodiments, if an inactive ticket would have won a prize in adrawing, the ticket may be activated subsequent to or upon theoccurrence of the drawing for which the ticket would not otherwise havebeen active (e.g., retroactively so as to include that drawing).

In some embodiments, a prize or payout may be offered and/or provided toa purchaser of a conditional lottery ticket if or when his ticket wasnot active for a particular drawing.

In some embodiments, a prize may be authorized for a holder of aninactive conditional lottery ticket, if the ticket, had it been activefor a particular drawing, would have therefore qualified for at least acertain payout in that drawing. For instance, the player may beauthorized to receive at least a portion (and up to 100%) of the payouthe would have otherwise received had the entry been made active withrespect to the drawing.

In some embodiments, a player may be entitled to an adjusted payout(e.g., a “consolation payout”) if (i) at least a minimum number of theplayer's numbers associated with an inactive ticket are drawn as winningnumbers with respect to the lottery drawing and (ii) the player'scondition(s) were not satisfied prior to the lottery drawing and/or anactive entry was not created for the player prior to the occurrence oflottery drawing.

In one illustrative example, a player purchases a conditional lotteryticket associated with the player numbers 1-2-3-4-5 and 6, and hiscondition(s) stipulate that the ticket is to be activated (i.e. an entryis to be created) anytime a lottery drawing will occur for which theassociated jackpot is projected to exceed $25 MM. On January 1, thelottery jackpot is projected to be $18 MM. Accordingly, the player'scondition based on the projected jackpot is not satisfied and no activeentry is provided for the January 1 drawing. On January 1, the numbers1-2-3-4-5 and 10 are drawn as winning lottery numbers. In this example,had the player's ticket been active in the January 1 drawing, theplayer's active ticket would have entitled the player to receive apayout or prize (e.g., a $100,000 payout), based on the rules of thelottery game. In accordance with some embodiments, the player in thisexample may be entitled to a $50,000 “consolation payout.”

According to some embodiments, such consolation payouts may be fundedthrough a nominal reduction in the amount awarded to one or more jackpotwinner(s) associated with the lottery drawing (if there was or were suchwinner(s)), and/or by reducing the amount of money applied to thejackpot for a subsequent lottery drawing (e.g., were there no jackpotwinner(s)).

In some embodiments, the consolation payout may be funded through thesale of an insurance-type feature, available for purchase at the timethe player initially purchases his conditional lottery ticket(s). In oneexample, for an additional fee at the time of purchase, players may beassured that they will be entitled to at least a portion (if not all of)any payout for which their lottery ticket would have otherwisequalified, regardless of whether or not the player's condition(s) weresatisfied prior to (or at the time of) the occurrence of a lotterydrawing. In another example, the insurance feature may only be availableand/or apply to certain payout amounts (e.g., any payout equal to orexceeding $1,000) and/or certain types of payouts (e.g., any payoutresultant when four (4) or more of the player's numbers match four (4)or more of the six (6) winning numbers in a “pick 6” lottery game).

According to some features of the invention, the conditional lotteryticket system 100 can permit a player to purchase conditional lotterytickets (i) individually, whereby the player's lottery ticket isactivated when the associated condition(s) are satisfied; (ii) on asubscription basis for a predefined fee, whereby the player's lotteryticket is automatically activated up to a predefined number of timeswhen the player-specified activation conditions are satisfied; or (iii)on a perpetual subscription basis, whereby the player's lottery ticketis automatically activated each time the player-specified activationconditions are satisfied until the subscription is cancelled (e.g.,inability to charge a specified credit card account or debit cardaccount).

The conditional lottery ticket system 100 may optionally include amechanism for automatically notifying subscription players of variousevents, such as a prize won with the ticket, the expiration of a lotteryticket, the activation/deactivation of a ticket, changes in one or moreconditions. Such a notification system may transmit messages via anumber of ways, such as email, instant message, telephone (e.g., usingan automated messaging system), and postal mail. Similarly, such eventsmay be made available in a known manner to a player via a Web site(typically when a player so requests such information by referencing theappropriate web page).

Players may register their preferred means of notification, preferrednotification events, and address for notification in a number of knownmanners (e.g., by registering via a web browser).

The lottery terminal 300 and the central lottery server 400, discussedfurther below in conjunction with FIGS. 3 and 4, respectively, maycomprise conventional hardware and software, as modified herein to carryout the functions and operations described below. The lottery terminal300 and the central lottery server 400 transmit digitally encoded dataand other information between one another over the lottery network 110.The lottery network 110 preferably comprises cable or wireless links onwhich electronic signals can propagate, and may be embodied, forexample, as (i) a dedicated wide area network (WAN), (ii) a telephonenetwork, including the combination of local and long distance wire orwireless facilities and switches known as the public switched telephonenetwork (“PSTN”), or (iii) the Internet. The data and other informationtransmitted by the lottery terminal 300 to the central lottery server400 for validation and storage may represent a player's name oridentification number, numbers to be played, and any activationconditions. Likewise, the data and other information transmitted by thecentral lottery server 400 to the lottery terminal 300 may representplay results and an acknowledgement or validation of play informationfor printing of an official lottery ticket by the lottery terminal 300.

According to a feature of the present invention, the conditional lotteryticket system 100 permits the player to specify the numbers to be playedfor each game, as well as any activation conditions. In one embodiment,shown in FIG. 2 a, a player utilizes a sense mark strip 200 or anothersuitable computer-readable material, to indicate (i) the numbers to beplayed in a number selection region 210 and (ii) any activationconditions in a condition specification region 220. Alternatively, theconditional lottery ticket system 100 may incorporate an automaticlottery number generation feature, commonly referred to as a“quick-pick” system, which randomly selects lottery numbers on behalf ofthe player. The “quick-pick” numbers may be generated by the conditionallottery ticket system 100 at the time of sale or at the time the ticketis activated. In such a “quick-pick” embodiment, the activationconditions can nonetheless be specified by the player orally to theoperator of the lottery terminal 300 or using a modified sense markstrip 200 or another suitable computer-readable medium.

In an alternate or supplemental embodiment, a player can specify one ormore side bets in a region 230 of the sense mark strip 200. Thus,according to a further feature of the invention, the conditional lotteryticket system 100 permits a player to place additional bets, forexample, on the number of jackpot winners, or on particularcharacteristics of the jackpot winners, such as the sex, county, or ageof the jackpot winner, preferably for an additional amount over thenormal cost of a lottery ticket. Prizes for the side bet can beseparately awarded or awarded as a multiplier of conventional lotteryjackpot awards, as would be apparent to a person of ordinary skill inthe art.

Once the central lottery server 400 has validated and stored theplayer's numbers and any activation conditions, in a manner discussedfurther below, the lottery terminal 300 preferably issues a lotteryticket 250, shown in FIG. 2B, to the player indicating the lotterynumbers to be played in a field 260, as well as a ticket identificationnumber 270, the date of issuance 280 and any specified activationconditions 290.

FIG. 3 is a block diagram showing the architecture of an illustrativelottery terminal 300. The lottery terminal 300 may be embodied, forexample, as a conventional dedicated lottery terminal, as modifiedherein to execute the functions and operations of the present invention.Alternatively, the lottery terminal 300 may be embodied as apoint-of-sale terminal that generates sales receipts containing bothmerchandise sales information and conditional lottery ticketinformation, as disclosed in U.S. Pat. No. 6,262,670, issued Jul. 31,2001 and incorporated by reference herein.

The lottery terminal 300 preferably includes a processor 310 and relatedmemory, such as a data storage device 320. The processor 310 may beembodied as a single processor, or a number of processors operating inparallel. The data storage device 320 and/or a read only memory (ROM)are operable to store one or more instructions, which the processor 310is operable to retrieve, interpret and execute. The processor 310preferably includes a control unit, an arithmetic logic unit (ALU), anda local memory storage device, such as, for example, an instructioncache or a plurality of registers, in a known manner. The control unitis operable to retrieve instructions from the data storage device 320 orROM. The ALU is operable to perform a plurality of operations needed tocarry out instructions. The local memory storage device is operable toprovide high-speed storage used for storing temporary results andcontrol information.

As discussed further below in conjunction with FIG. 8, the data storagedevice 320 preferably includes a lottery terminal process 800.Generally, the lottery terminal process 800 receives play informationfrom a player, for example, by reading a sense mark strip 200, andcommunicates with the central lottery server 400 via the lottery network110 to validate and store the play information and thereafter issue alottery ticket 250 to the player.

FIG. 4 is a block diagram showing the architecture of an illustrativecentral lottery server 400. The central lottery server 400 may beembodied, for example, as an RS 6000 server, manufactured by IBM Corp.,as modified herein to execute the functions and operations of thepresent invention. The central lottery server 400 preferably includes aprocessor 410 and related memory, such as a data storage device 420,which operate in a similar manner to the hardware described above inconjunction with FIG. 3.

The processor 410 may incorporate a random number generation functionand a cryptographic processing function. The random number generationfunction may be utilized to generate random “quick-pick” lotterynumbers, in the manner described above. The cryptographic processingfunction may be utilized to encrypt an authentication code that may beassociated with a particular lottery transaction.

As discussed further below in conjunction with FIGS. 5 through 7,respectively, the data storage device 420 preferably includes a ticketdatabase 500, a conditional ticket database 600 and a winning ticketdatabase 700. The ticket database 500 preferably stores information oneach ticket that is currently active in the conditional lottery ticketsystem 100. The conditional ticket database 600 preferably storesinformation on each conditional lottery ticket which is pending in theconditional lottery ticket system 100, including an indication ofassociated activation conditions. The winning ticket database 700preferably stores information on each ticket which has won a prize fromthe conditional lottery ticket system 100, including an indication ofthe prize amount.

In addition, as discussed further below in conjunction with FIGS. 9through 11, the data storage device 420 preferably also includes aticket sale transaction process 900, a conditional ticket evaluationprocess 1000 and a winning ticket evaluation process 1100. Generally,the ticket sale transaction process 900, shown in FIGS. 9A and 9B,coordinates lottery ticket transactions, such as the acceptance,validation and storage of play entries, including the player's numbersand any activation conditions. The conditional ticket evaluation process1000, shown in FIG. 10, preferably periodically evaluates pendingconditional lottery tickets to determine if the associatedplayer-specified activation conditions are satisfied and therebyactivate the conditional ticket. The winning ticket evaluation process1100, shown in FIG. 11, preferably compares the numbers associated witheach activated lottery ticket for a given drawing with winning numbercombinations to identify winning tickets and associated prize amounts.

FIG. 5 illustrates an exemplary ticket database 500 that preferablystores information on each ticket which is currently active in theconditional lottery ticket system 100. The ticket database 500 maintainsa plurality of records, such as records 505-520, each associated with adifferent active ticket. For each active ticket identified by ticketnumber in field 525, the ticket database 500 includes an indication ofthe game type and numbers selected in fields 530 and 535. In addition,the ticket database 500 preferably records the ticket purchase date,drawing date and merchant identifier in fields 540 through 550,respectively.

FIG. 6 illustrates an exemplary conditional ticket database 600 thatpreferably stores information on each conditional lottery ticket whichis pending in the conditional lottery ticket system 100, including anindication of associated activation conditions. The conditional ticketdatabase 600 maintains a plurality of records, such as records 605-615,each associated with a different conditional lottery ticket. For eachconditional lottery ticket identified by ticket number in field 625, theconditional ticket database 600 includes an indication of the game typeand numbers selected in fields 630 and 635. In addition, the conditionalticket database 600 preferably records the ticket purchase date andmerchant identifier in fields 640 and 645, respectively. Finally, theconditional ticket database 600 records the associated activationconditions and current status in fields 650 and 655, respectively.

FIG. 7 illustrates an exemplary winning ticket database 700 thatpreferably stores information on each ticket that has won a prize fromthe conditional lottery ticket system 100, including an indication ofthe prize amount. The winning ticket database 700 maintains a pluralityof records, such as records 705-715, each associated with a differentwinning ticket. For each winning ticket identified by ticket number infield 725, the winning ticket database 700 includes an indication of thegame type, drawing date and corresponding prize amount in fields 730through 740, respectively.

As discussed above, the lottery terminal 300 preferably executes alottery terminal process 800, shown in FIG. 8, to receive playinformation from a player, for example, by reading a sense mark strip200, and to communicate with the central lottery server 400 via thelottery network 110 to validate and store the play information andthereafter issue a lottery ticket 250 to the player. As illustrated inFIG. 8, the lottery terminal process 800 begins during step 810, uponreceipt of a sense mark strip 200 from a player indicating play numberor any conditions for ticket activation. It is noted that in a“quick-pick” implementation, the play numbers will preferably berandomly generated by the processor 410 of the central lottery server400.

The lottery terminal 300 will then read the ticket data from the sensemark strip 200, during step 820, including the game type, number ofgames played, selected numbers per game, and any player-specifiedactivation conditions. Thereafter, the ticket information obtained inthe previous step is preferably transmitted to the central lotteryserver 400 during step 830, together with a merchant identifier, andtime and date of purchase.

The lottery terminal 300 will wait for a response from the centrallottery server 400 during step 840 and thereafter read the receivedresponse during step 850, including the ticket number which has beenassigned by the central lottery server 400 and a confirmation of theactivation conditions.

Finally, the lottery terminal 300 will print the correct number ofofficial lottery tickets during step 860 with the appropriate ticketinformation, preferably including the assigned ticket number, activationconditions and selected numbers for each game played, before programcontrol terminates during step 870.

As discussed above, the central lottery server 400 preferably executes aticket sale transaction process 900, shown in FIGS. 9A and 9B, tocoordinate lottery ticket transactions, such as the acceptance,validation and storage of play entries, including the player's numbersand any activation conditions. As illustrated in FIG. 9A, the ticketsale transaction process 900 begins during step 905, upon receipt of atransmission from a lottery terminal 300. Thereafter, the centrallottery server 400 will read the transaction data during step 910,including the number of games played, game type, numbers selected pergame played, merchant identifier, and purchase time and date.

The ticket sale transaction process 900 will then identify thetransaction as a ticket registration during step 915. A test is thenperformed during step 920 to determine if the received ticketinformation is conditional. If it is determined during step 920 that thereceived ticket information is not conditional, then the ticket saletransaction process 900 will access the ticket database 500 during step925 and then create an appropriate number of new records in the ticketdatabase 500 for each active ticket during step 930. Thereafter, ticketnumbers are assigned during step 935 for each game played, before theticket number, numbers selected and game type are stored in theappropriate new record in the ticket database 500 during step 940. Theticket data is then transmitted to the lottery terminal 300 during step945 before program control ends during step 950.

If, however, it is determined during step 920 that the received ticketinformation is conditional, then the activation conditions of thetickets are read during step 955 and a test is then performed duringstep 960 to determine if the conditions are currently satisfied. If itis determined during step 960 that the conditions are currentlysatisfied, then program control proceeds to step 925 to activate thetickets and create ticket records in the ticket database 500, in themanner described above. For example, if the amount of the jackpot prizealready exceeds five million dollars ($5,000,000) at the time ticketnumber 45683 (FIG. 6) is sold, then the ticket is automaticallyactivated at the time of the sale, and a ticket record is automaticallycreated in the active ticket database 500.

If, however, it is determined during step 960 that the conditions arenot currently satisfied, then program control proceeds to step 965 (FIG.9 b) to store the play information in the conditional ticket database600. Thus, the ticket sale transaction process 900 will access theconditional ticket database 600 during step 965 and then create anappropriate number of new records in the conditional ticket database 600for each conditional ticket during step 970. Thereafter, ticket numbersare assigned during step 975 for each conditional game played, beforethe ticket number, numbers selected, game type and activation conditionsare stored in the appropriate new record in the conditional ticketdatabase 600 during step 980. The ticket data is then transmitted to thelottery terminal 300 during step 985, together with confirmation of anyactivation conditions, before program control ends during step 990.

As previously indicated, the central lottery server 400 preferablyperiodically executes the conditional ticket evaluation process 1000,shown in FIG. 10, to evaluate pending conditional lottery tickets todetermine if the associated player-specified activation conditions aresatisfied and thereby activate the conditional ticket. As illustrated inFIG. 10, the conditional ticket evaluation process 1000 begins duringstep 1010, by accessing the conditional ticket database 600. A test isthen performed during step 1020 to determine if there are any records inthe conditional ticket database 600 having activation conditions thatare currently satisfied. If it is determined during step 1020 that thereare no records in the conditional ticket database 600 having activationconditions which are currently satisfied, then the conditional ticketdatabase 600 is closed during step 1030 before program controlterminates during step 1040.

If, however, it is determined during step 1020 that there are records inthe conditional ticket database 600 having activation conditions whichare currently satisfied, then the ticket is activated during step 1050by changing the status of the satisfied records in the conditionalticket database 600 to “active” and creating a record of the data in theticket database 500. For example, if the jackpot prize exceeds fivemillion dollars ($5,000,000) at the time the conditional ticketevaluation process 1000 is executed, then ticket number 45683 (FIG. 6)will be activated, and a ticket record is created in the active ticketdatabase 500. Thereafter, program control terminates during step 1060.

In one embodiment, the player may be required to pay a certain amountfor each ticket record created in the active ticket database (for eachentry). In one embodiment, the player may be required to pay a certainamount for a conditional lottery ticket, regardless of the number ofcorresponding entries that are created. In one embodiment, the playermay be required to pay a certain amount for a conditional lotteryticket, but is permitted only up to a maximum number of correspondingentries.

In one embodiment, payment is rendered at the time an entry is created(e.g., upon satisfaction of a condition). Preferably, a means forautomatically charging the customer is employed, such as a credit cardaccount which may be charged automatically. To identify the credit cardaccount, a credit card number can be provided by a customer, e.g.,during a registration process, during acquisition of the conditionallottery ticket at a lottery terminal. Other payment identifiers (e.g.,debit card account number, PayPal® identifier) may be specified.

The central lottery server 400 preferably executes a winning ticketevaluation process 1100, shown in FIG. 11, to identify winning ticketsand associated prize amounts. As illustrated in FIG. 11, the winningticket evaluation process 1100 initially accesses the set of winningnumbers during step 1110 and the ticket database 500 during step 1120. Atest is then performed during step 1130 to determine if there are anyrecords in the ticket database 500 with winning combinations of numbersselected. If it is determined during step 1130 that there no records inthe ticket database 500 with winning combinations of numbers selected,then the ticket database 500 is closed during step 1140 and the jackpotis preferably increased for the next drawing, before program controlterminates during step 1190.

If, however, it is determined during step 1130 that there are records inthe ticket database 500 with winning combinations of numbers selected,then records having such winning combinations are preferably transferredto the winning ticket database 700 during step 1160. The drawing date,prize amount and winning numbers are preferably stored in each newrecord of the winning ticket database 700 during step 1170. Thereafter,the, “active” records from the conditional ticket database 600 arepreferably deleted during step 1180 before program control terminatesduring step 1190.

It is to be understood that the embodiments and variations shown anddescribed herein are merely illustrative of the principles of thisinvention and that various modifications may be implemented by thoseskilled in the art without departing from the scope and spirit of theinvention.

1. A method comprising receiving a lottery record associated with a saleof a lottery ticket, in which the lottery record includes a plurality oflottery numbers, and a condition for creating at least one entry thatincludes the plurality of lottery numbers in a lottery drawing;determining, by a lottery server, that the condition included in thelottery record for creating the at least one entry is not satisfied;determining, by the lottery server, a result for the lottery drawing,wherein the lottery ticket corresponding to the lottery record thatincludes the plurality of lottery numbers and the condition is notactive for the lottery drawing because the condition was not satisfied;and determining, by the lottery server, that the lottery ticketcorresponding to the lottery record including the plurality of lotterynumbers would have qualified for a first payout for the lottery drawinghad the lottery ticket been active for the lottery drawing; andassociating a second payout with the lottery ticket based on the firstpayout.
 2. The method of claim 1, further comprising: providing thesecond payout to a holder of the lottery ticket.
 3. The method of claim1, further comprising: determining the first payout based on a number ofmatches between a set of winning numbers drawn in the lottery drawingand the plurality of lottery numbers.
 4. The method of claim 1, whereinthe second payout is less than the first payout.
 5. The method of claim1, wherein the second payout comprises a consolation payout.
 6. Themethod of claim 1, wherein the second payout is equal to a fixedpercentage of the first payout that is less than 100%.
 7. The method ofclaim 1, wherein the second payout is funded at least in part by salesof insurance.
 8. The method of claim 1, wherein the second payout isfunded at least in party by reducing a jackpot amount associated withthe lottery drawing.
 9. The method of claim 1, wherein the second payoutis funded at least in party by reducing a jackpot amount associated witha second lottery drawing.
 10. The method of claim 1, further comprising:offering to a purchaser of the lottery ticket, in exchange for a fee, anentitlement to at least a portion of any payout for which the lotteryticket would qualify in a lottery drawing, regardless of whether thelottery ticket is active for that lottery drawing.
 11. The method ofclaim 11, wherein the entitlement requires that the payout be greaterthan a predetermined amount.
 12. The method of claim 11, wherein theentitlement requires that the plurality of lottery numbers match atleast a predetermined number of winning numbers drawn for the lotterydrawing.
 13. The method of claim 1, further comprising: determining thatthe condition is satisfied; and creating, by the lottery server, atleast one entry including the plurality of lottery numbers in a secondlottery drawing in response to determining that the condition issatisfied.
 14. The method of claim 1, further comprising: activating thelottery ticket for the lottery drawing retroactively.
 15. The method ofclaim 1, further comprising: activating the lottery ticket for thelottery drawing upon determining the result of the lottery drawing. 16.The method of claim 1, wherein the lottery server is in communicationwith at least one lottery terminal.
 17. The method of claim 1, in whichreceiving the lottery record comprises: receiving the lottery record bythe lottery server via a lottery terminal.
 18. A computer readablememory storing instructions configured to direct at least one processorto perform a method, the method comprising: receiving a lottery recordassociated with a sale of a lottery ticket, in which the lottery recordincludes a plurality of lottery numbers, and a condition for creating atleast one entry that includes the plurality of lottery numbers in alottery drawing; determining, by a lottery server, that the conditionincluded in the lottery record for creating the at least one entry isnot satisfied; determining, by the lottery server, a result for thelottery drawing, wherein the lottery ticket corresponding to the lotteryrecord that includes the plurality of lottery numbers and the conditionis not active for the lottery drawing because the condition was notsatisfied; determining, by the lottery server, that the lottery ticketcorresponding to the lottery record including the plurality of lotterynumbers would have qualified for a first payout for the lottery drawinghad the lottery ticket been active for the lottery drawing; andassociating a second payout with the lottery ticket based on the firstpayout.
 19. An apparatus comprising: a processor; and a storage devicein communication with the processor, the storage device storinginstructions configured to, when executed by the processor, direct theprocessor to perform a method, the method comprising: receiving alottery record associated with a sale of a lottery ticket, in which thelottery record includes a plurality of lottery numbers, and a conditionfor creating at least one entry that includes the plurality of lotterynumbers in a lottery drawing; determining that the condition included inthe lottery record for creating the at least one entry is not satisfied;determining a result for the lottery drawing, wherein the lottery ticketcorresponding to the lottery record that includes the plurality oflottery numbers and the condition is not active for the lottery drawingbecause the condition was not satisfied; determining that the lotteryticket corresponding to the lottery record including the plurality oflottery numbers would have qualified for a first payout for the lotterydrawing had the lottery ticket been active for the lottery drawing; andassociating a second payout with the lottery ticket based on the firstpayout.